The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Whichever way you look at this the company is undervalued.
Asset values, income, dividend, PE ratio, PEG all show good rationale for buying and holding. The company has done nothing but progress over the last five years. I was looking originally at this passing 200 as a value point, but I think 250-275 looks more like fair value based on the numbers.
If they can close out the year end as positively as seems likely given the Q3 commentary, then we should see some recovery towards that fair value level. The current price simply does not reflect the value in the company.
Makes me wonder why they ‘sneakily’ reduced the divi earlier. I also note the SP rise ahead of results. Was pleased to see Marc buy, 26th Sept but thought that was within the 1 month close period for interims which ends tomorrow but still wtf do I know!
Bought back in here sub 150 and fully intend to add more as likewise I see divi increasing soon and I think copper will turn due to supply constraints
Link from nom…
https://txtify.it/https://www.ft.com/content/80fdd315-2db4-46fa-a76e-6d3d4eff83e5
Usual caveats
Trek
Yes, very pleasing set of numbers yet again. Skewed lower by VB timings, but that'll flow through to Q4.
As much as I'd like a dividend increase too, the landscape for mining finance is becoming increasingly difficult, and it's going to be a great time to deploy capital if you're a royalty and streamer. I have no doubt the board will increase the dividend when the time is right.
I entirely agree .... and continuing to build a substantial nest egg for new acquisitions. I also agree re the dividend. Whilst I want to see the company grow I think they can probably afford an increase to please shareholders and still have a very substantial fund left for acquisitions.
On the face of it a very solid set of results especially when you factor in slippage on Voisey Bay royalty stream due to shipping delays. Looking for a dividend increase at some stage after full year results.
Here's the recording of today's presentation
https://youtu.be/u4Jz-kINSDU
Averaging back in here now sub 150. Obviously not sure if it’s the bottom so will follow it down for when hopefully macro improves. Divi looks safe.
Usual caveats
Trek
I think it was the choice of name that threw me more than anything, its just very meh.
Saying that does it matter if they make all the right moves - probably not.
I do have an open question if anyone has the answer it would be most appreciated. On the new website, it has no mention of the hummingbird royalty in Africa. Did the company divest this and I missed it?
I don't mind the name change so long as it is backed up by an investable philosophy change.
Anglo Pacific was a name no longer relevant to what the company does. Brazil nickel hardly linked to either anything Anglo or anywhere near the Pacific for example. Breaking with a past perceived linked to coal is not all bad either.
What I am not sure about is the new name, it could have been more explicitly linked to the new resource strategies.
Bit perplexed by the name change, not sure it adds value and tbh it sounds like a penny stock. Hardly what we need as shareholders!
Unimpressed by that interview and worth noting that KF made no mention of nickel ! Share price from 180 on 12 September ?